1. Field of the Invention
This invention relates to the field of on-line wagering systems of the type in which a number of agent terminals in data communication with a central data processor manage the acceptance and validation of play entries and operator security in games of chance or skill. The players, for example, guess the outcome of unpredictable events, and the correct or most nearly correct entrants share a prize. The operators, for example, activate the transaction of the play data to the central processor and manage the accounting and reporting transactions necessary to balance payments to and from an administration department. In particular, the invention relates to an improved on-line wagering system of this type, wherein player entries (past and present), payment, operator security data, play validation and storage of information regarding the identities and demographics of individual players are managed by means of memory cards issued to the individual players and terminal operators, the memory cards being interfaced with the agent terminals when a player enters a game or when an operator initiates a transaction.
2. Prior Art
User-carried information storage cards are known in connection with identification functions and as means to manage debiting and crediting of customers' financial accounts. Cards range from passive memory storage means in which a magnetic strip affixed to a thin plastic card stores digital data such as the player's account number and current balance, through laser memory cards used to track personal medical data, to more sophisticated devices in which an integrated circuit and memory are embedded in a card, the card in each case being substantially the same dimensions as a familiar plastic credit card. Such more sophisticated cards are convenient when dealing with payment of money, although magnetic strip cards provide substantially the same function. When using the integrated circuit card, the customer's current account balance is recorded on the card and a corrected balance is written after reading and debiting the current balance to account for purchases and the like. The integrated circuit card functions as a portable means for storing indicia representing value.
User carried cards also are known for identification purposes. The cards each carry a unique customer code such as an identity code or account number, that can be easily read by electronic equipment such as a security gate apparatus, credit card reader or an automatic bank teller machine. Frequently, the user must manually enter a second code that is matched to the account number, etc. A central data processor at the bank, credit company or the like handles storage of variable information such as the remaining credit or current account value. This type of card is a read-only device that allows the carrier access to the premises or account.
User-carried cards for identification purposes are shown, for example, in U.S. Pat. Nos. 4,575,621-Dreifus; 4,459,075-Saada et al; 4,491,725-Pritchard; 4,501,960-Jouvet et al; 4,373,134-Grace et al; and, 4,544,834-Newport et al. These patents, in varying levels of sophistication, disclose details by which information can be stored on a card and used for identification purposes including handling sales of products or services without the need for cash or other forms of electronic information transfer.
Some general purpose means including cards adapted to store information are disclosed in U.S. Pat. No. 4,511,796-Aigo; 4,532,419-Takeda, and 4,004,133-Hannan et al. U.S. Pat. No. 4,352,011-Guillou discloses a card specifically adapted for subscribing to a video script processing system. The disclosures of the foregoing patents relating to structural and functional attributes of user-carried memory devices are incorporated herein. One can also refer to currently available smart card products, for example, those of Microcard Technology Incorporated, 14070 Proton Road, Dallas, Tex. 75244. In addition, one can refer to currently available magnetic strip card products, for example, those of Sillcocks Plastics International, Inc., Berksley Heights, N.J. and currently available laser cards, for example, those of Drexler Technology Inc., Mountain View, Calif. Notwithstanding this variety of uses for financial and identification cards, systems and devices to date have not adapted memory card technology to the peculiar needs of on-line wagering systems. Wagering systems known to date have not been adapted to take advantage of the capabilities, over and above simple account-storing or user-identifying cards, that become possible in an on-line wagering system having memory card means for alternative inputs and outputs to the agent terminals, in addition to or instead of inputs and outputs used traditionally.
A typical prior art on-line wagering system includes a plurality of agent terminals dispersed throughout a geographical area, each one in at least occasional data communication with a central system data processor, for example, by radio or telephone lines, or by downloading a stored record of transactions. Communications can be encrypted for transmission of critical data such as win indicia in an "instant" game in which the agent terminal is adapted to immediately issue a validated play card, for example with a scratch-off surface removed by the user to reveal card win indicia. Operator security is typically limited to password controls, where many operators at a single retail location may have knowledge of the password. In many games the player guesses the occurrence of random or at least unpredictable events, such as the drawing of numbers, the outcome of sporting events and the like. Before approaching the agent terminal the user according to the prior art makes hand written entries on an entry card having printed boxes or similar areas to be marked for selecting among different numbers, contestants or other indicia which may become the winning entry. A user may be required, for example, to choose and mark six correct numbers from forty possible numbers for each individual entry. This marked entry card is read at the agent terminal, for example using optical mark sensing equipment, and the agent terminal transmits the data to the central lottery computer, which validates the data and returns a validation code to the agent terminal. The agent terminal then prints a validation receipt as proof of an entry, which is carried by the user and eventually compared to winning numbers published or otherwise disseminated when a winner is picked. Alternatively, keyboard entry means at the agent terminals can be used to select play entry data, or to select generation of random numbers if the user so chooses.
Many users repeat their entry numbers or other patterns of playing data every time they play. These patterns might be, for example, particular numbers such as birthdays, social security numbers, license tag numbers or other arbitrarily-chosen numbers or patterns which a user regards as lucky. Users who repeat their patterns must complete a mark sense entry for every play or explain to the operator of the agent terminal the particular data and/or data pattern desired. In many on-line wagering systems, particularly in Europe, every play entry of every wagering game must be accompanied by the user's name and address, as a means to facilitate payment of winnings and to provide marketing data to management. The user must enter this data for each entry card. For repeat pattern players, it is quite tedious to complete their entry forms, which is a disincentive to play. Some agents even keep card files near their terminals for reference when entering play data, as a service for their regular repeat pattern players.
On-line wagering system managers in most cases have very little information about the players. Mark-sensed entry cards in those systems where entries must include users' names and addresses could be collected and analyzed to determine playing patterns and demographics from the addresses given by entrants, and possibly to determine their likely gender based upon their first names. However, complete data necessary to analyze demographic particulars of players is practically not available according to a typical on-line wagering system. Similarly, the individual playing history of a given player is not available or even possible to generate, except in name/address entry systems, and even then only with the greatest difficulty. Therefore, it is not possible to determine statistically the attribute of persons playing the lottery, their identities and playing habits, or otherwise to generate data that would assist operators of on-line wagering systems in marketing their products to specific players or to specific demographic groups.
A typical memory card as used according to the prior art for access to an account such as a bank account stores only a few digital data words. The card stores one or more unique codes (e.g., account numbers and/or security codes), which are associated by the data processing equipment at the bank with internal memory records (e.g., the stored account balance). In connection with a card in which indicia representing increments of value are stored on the card and are decremented when using the card to purchase a product or service, there has been no need to store any data relative to the user. In the latter case, storage of the incremental value indicia or "tokens" has been sufficient. If the enhanced security provided by data relative to the user stored on the card is implemented in a magnetic memory card, the magnetic memory card could function as the secure data carrier according to the present invention.
According to the present invention, a memory card arrangement for a typical on-line wagering system substantially improves system convenience for users, and also permits lottery management to monitor performance and playing history relative to individual players and/or groups.
Memory cards are available with on-card security means operative to disable the card in the event unauthorized attempts are made to alter the contents thereof. The present invention also provides security means operative to prevent access to the memory card data by managing the data relative to the user at a central computer facility. According to the present invention, security capabilities of memory cards and central computer accounting are employed in order to prevent a user from increasing the number of token values stored on the card, which under control of a terminal are incremented upon receipt of payment from the customer, and decremented upon the customer purchasing an on-line wagering service, specifically buying a play entry. Either the memory card or the terminal can control the process of incrementing and/or decrementing the number of tokens on the memory card. On-card data storage means or terminal control procedures preferably accept validation codes returned from the central processing computer of the wagering system, obviating the need for a printed validation ticket, otherwise required for the user to prove a play entry. Unscrupulous persons may have an incentive to attempt to increase playing tokens or to discover a winning validation code and attempt to claim a prize. However, the memory card according to the system of the invention is uniquely associated with an individual person. It is not possible for one person to claim a prize on a play which readily can be determined by reference to available wagering system data to belong to another person.
According to the invention, the security of an on-line wagering system can be further increased by storing an encryption code directly on an individual user's memory card. This encryption code can be an encryption key that is uniquely stored on the user's memory card, and not available through the central data processor except during actual communications with the agent terminal in which the memory card has been loaded. An encryption key code, matched to an encryption key code at the central processor, can be arranged according to algorithms known in the prior art to encrypt data stored on a memory card such that unscrupulous persons who attempt to discern data on the card or data transmitted between the on-line wagering system and the card, would need both the key on the card and the key in the on-line wagering system central processor. This arrangement substantially improves security and can be combined with an on-card security means adapted to disable a card in the event of detected unauthorized access.
According to the invention additional security can be added to the game by providing retail terminal operators with individual memory cards that act an intelligent keys to the transaction. The authority of a particular operator will be managed both by the control transaction processor and by the memory card. The operator would be required to provide on-line identification by means of an operator security card and secret codes entered into the keyboard.
According to the present invention, an on-line wagering system can be operated with increased security and decreased expense, without the need for printed verification receipts, mark sense betting slips or other paper indicia. Security is enhanced while accuracy and convenience are increased, with the additional benefit that marketing information becomes available to operators of the wagering system in a convenient manner that is easily integrated with wagering system operations